Going to purchase your first home? Time to get excited and also plan the finances and the property requirements. To avoid a liquidity crunch, finance the purchase with a home loan from a reputed bank. Then follow these 5 simple tips to buy your first home.
Fix your Budget
When you purchase your home, you pay not just for the property but also taxes and legal fees. Later you need to pay for insurance, repair and maintenance too. So, it’s good to fix a budget for buying a home. A smart way to do that is to use the home loan EMI calculator on the official website of your chosen lending bank. Choose an eligible loan amount, a suitable payment tenure and interest rate. See what EMI amount pops up. Check whether you can pay it every month. If not, keep adjusting the values of the parameters until you get a payable EMI amount.
What Kind of Property do You Want?
As per your budget and requirements, choose the location and the kind of house. Moreover, keep in mind the purpose of buying a home. Do you want to live in it or resell it? If you plan to inhabit it with your family members, see if the apartment has enough rooms for you all. Also, consider how long you want to stay there. If you purchase a home for capital investment, consider the tastes of the target tenants to choose a suitable kind of property.
What Amenities are You Looking For?
It is necessary to think about the amenities you want. Modern apartment complexes come with clubs, swimming pools, spas and gyms. You may be looking for them. If you have little children, they may want a play area. A parking lot or garage would be helpful if you have a car. Opt for the amenities carefully since they add to the overall value of the home you purchase.
Where do You Wish to Move In?
Compare the prices of residential properties and living costs in different cities. As per your budget, pick a city. Then choose an ideal location based on these factors:
- Easy access to public transport
- No reported criminal activities
- A good neighbourhood
- Nearness to workplace
- Proximity to schools
- Nearness to metro or train stations
- Closeness to markets
- Again, your budget
Go for a Reputed Builder
Buying a home is a huge commitment. So, first, go through the credentials of the builder before finalising him. For instance, the builder’s track record can tell you if his/her projects were delivered on time earlier. Also, check out testimonials of customers to see whether they were satisfied with the construction quality and the overall project. It’s best to avoid the operators without any track record but a mouthful of big promises. If not sure, choose a ready-to-move-in unit.
Once you have finalised to purchase a home, see if you wish to pay in instalments or all in one go. Whichever option you choose, apply for a home loan with competitive interest rates. The lower the interest you are eligible for, the less EMI you need to pay!